Motor insurer Admiral failed to be driven higher, despite another broker saying the stock has been oversold and is due for a bounce.

Keefe, Bruyette & Woods (KBW) initiated coverage of the shares with an outperform rating and £12 price target in a note entitled “sunshine even in cloudy skies”.

In an extensive 52 page note on the shares, it argued the company has a very strong underlying business model and market-leading underwriting skills.

“On a best-estimate basis, Admiral offers considerable value,” KBW explained. “This is even after assuming a delay until 2009 in the underwriting cycle turnaround, at which point we assume premium rate increases of 15% followed by 9% in 2010.”

The bullish comments comes a week after UBS upgraded the shares from neutral to buy.

However, as Insurance Times went to press, investors continued to sell Admiral, causing the stock to hover around 872p – just shy of its year low.

Dealers said the upbeat research has been outweighed by Admiral’s decision to shelve its plans to sell a stake in its price comparison website,

Speaking of internet companies, attracted attention as further details of its London float were unveiled.

The price comparison site will be valued at between £864m and £1.05bn after setting a range of 170p-210p for its shares. This is at the lower end of the pricing range. The shares are expected to begin trading on July 31.